November 13, 2012

Rob Portman Encouraged by Obama's 'Tax Code' Talk

Sen. Rob Portman (R., Ohio) said he was encouraged by recent comments from President Barack Obama that policy makers could change the tax code to bring in more revenue. He also said he noticed with particular interest that Mr. Obama said he would raise revenue through changing the tax code, not necessarily raising tax "rates."

His comments came in response to questions at the Wall Street Journal's CEO Council meeting in Washington.

Count me among the skeptics that foresee little compromise on Obama's part juxtaposed with big problems ahead for the economy.

The Bush-era income tax rates will expire at the end of the year. That is only one of a number of financially significant-some say cataclysmic-deadlines that occur around year end: the payroll tax holiday ends, the alternative minimum tax patch will expire, $36 billion in Obamacare taxes will take effect, tax extenders will expire, the (minimal) 2009 "stimulus" tax cuts will run out, the inheritance tax will increase, and 100% expensing for business investment will expire.

At the same time, $109 billion in sequestration begins, affecting both non-defense and, disproportionately, defense spending. But other spending reductions will go into effect as well: extended unemployment insurance benefits will expire, and, unless action is taken, Medicare reimbursement rates for physicians will decline.

And on top of all of that, the U.S. will hit its debt ceiling of $16.4 trillion in the coming weeks.

Yet, as Erika Johnsen aptly points out, while President Obama leads, or at least puts on a show of leading, the upcoming fiscal-cliff negotiations, we're going to keep hearing an emphasis about "fairness" -- but fairness does nothing to bring about economic prosperity, which is the truest, most efficient, most penetrating way to materially help the greatest number of people -- on both a national and a global scale. The Republicans have the policy right: Measures that encourage economic growth are what's going to bring in more revenue and make more people wealthier and more self-sufficient, while the Democrats proposals will just keep us piddling along in the economic shallows.

Meanwhile, Obama prefers to put a priority on huddling up with his leftist, pro-Marxist/tax-the-rich over 'fairness' buddies before sitting down with Congressional and business leaders to address the looming fiscal and economic disasters ... a sure sign of what's to come.

Sen. Rob Portman (R., Ohio) said he was encouraged by recent comments from President Barack Obama that policy makers could change the tax code to bring in more revenue. He also said he noticed with particular interest that Mr. Obama said he would raise revenue through changing the tax code, not necessarily raising tax \"rates.\"\n\nHis comments came in response to questions at the Wall Street Journal's CEO Council meeting in Washington.

Count me among the skeptics that foresee little compromise on Obama's part juxtaposed with big problems ahead for the economy.\n\nAs John Hinderaker reminds us:

The Bush-era income tax rates will expire at the end of the year. That is only one of a number of financially significant-some say cataclysmic-deadlines that occur around year end: the payroll tax holiday ends, the alternative minimum tax patch will expire, \$36 billion in Obamacare taxes will take effect, tax extenders will expire, the (minimal) 2009 \"stimulus\" tax cuts will run out, the inheritance tax will increase, and 100% expensing for business investment will expire.\n\nAt the same time, \$109 billion in sequestration begins, affecting both non-defense and, disproportionately, defense spending. But other spending reductions will go into effect as well: extended unemployment insurance benefits will expire, and, unless action is taken, Medicare reimbursement rates for physicians will decline.\n\nAnd on top of all of that, the U.S. will hit its debt ceiling of \$16.4 trillion in the coming weeks.

Yet, as Erika Johnsen aptly points out, while President Obama leads, or at least puts on a show of leading, the upcoming fiscal-cliff negotiations, we're going to keep hearing an emphasis about \"fairness\" -- but fairness does nothing to bring about economic prosperity, which is the truest, most efficient, most penetrating way to materially help the greatest number of people -- on both a national and a global scale. The Republicans have the policy right: Measures that encourage economic growth are what's going to bring in more revenue and make more people wealthier and more self-sufficient, while the Democrats proposals will just keep us piddling along in the economic shallows.\n\nMeanwhile, Obama prefers to put a priority on huddling up with his leftist, pro-Marxist/tax-the-rich over 'fairness' buddies before sitting down with Congressional and business leaders to address the looming fiscal and economic disasters ... a sure sign of what's to come.\n\nRelated:\n Just so we're clear, we all understand these tax hikes would accomplish zilch, right?\nYear-Over-Year Deficit Worsens in October, and the Problem Is Spending, Not Receipts\n